Describe the purpose of the approved persons regime.

The approved persons regime is fundamentally designed to ensure that individuals in critical roles within financial services firms possess the appropriate competence and integrity to perform their functions effectively. This regime is crucial because it holds these individuals accountable, ensuring that they can be trusted to act in the best interests of customers and the financial system as a whole. By requiring that these key personnel meet stringent standards, the FCA aims to promote higher standards of conduct and to foster a culture of responsibility within financial institutions. This oversight helps to protect the integrity of the financial markets, instills confidence among consumers, and mitigates the risk of misconduct or poor management that could lead to significant financial detriment.

The intent of the regime is specifically focused on competence and integrity rather than attempting to manage conflicts of interest, regulate salaries, or evaluate financial performance, which are addressed through different mechanisms and regulatory frameworks.